Bitcoin and gold prices slipped as President Donald Trump says U.S. munitions stockpiles at the medium and upper-medium level are “virtually unlimited,” signaling the US-Iran war could extend to weeks.
Donald Trump Touts Unlimited US Munition Stockpiles amid Iran War
President Donald Trump claimed the United States’ munition stockpiles have “never been higher or better,” as the US is racing to destroy Iran’s missile and drone force before running out of interceptors.
“As was stated to me today, we have a virtually unlimited supply of these weapons. Wars can be fought ‘forever,’ and very successfully, using just these supplies,” Trump posted on Truth Social, openly touting an unlimited supply of weapons in conflict with Iran.
“At the highest end, we have a good supply, but are not where we want to be. The United States is stocked, and ready to WIN, BIG!!! ” he said. This comes in line with his earlier stance of extending the Iran war for at least four weeks.
Bitcoin Falls Under $68,000
Bitcoin erased earlier gains and dropped 3% to trade at $67,946. The 24-hour low and high are $65,303 and $70,044, respectively. Furthermore, trading volume has increased by 40% in the last 24 hours, indicating a rise in interest among traders.
In the daily timeframe, BTC price is moving in a narrow Bollinger bands and below 50- moving average (MA), 100-MA and 200-MA. Bitcoin on-chain data confirms bear market conditions remain intact.
CoinGlass data showed mixed sentiment in the derivatives market. At the time of writing, the total BTC futures open interest jumped almost 4% to $44.48 billion in the last 24 hours. However, the 4-hour BTC futures OI on CME and Binance tumbled more than 6.50% and 3%, respectively.
Gold Slips Under $5,300
Spot gold prices fell $100/oz in 90 minutes, officially dropping below $5,300 after Donald Trump signals massive munitions supply to continue the US-Iran war.
Amid increasing geopolitical tensions in the Middle East, the US and Israel are increasing attacks on Iran and signaling that the conflict could last for a month or “far longer.”
However, gold is facing pressure due to a US dollar index (DXY) and rising US 10-year Treasury yields. Meanwhile, Iran declared the Strait of Hormuz closed and threatened to target any vessels attempting to transit the critical energy corridor, driving oil prices higher.
This could push US inflation higher, prompting traders to reduce bets for Fed rate cuts. This will cause Bitcoin and gold to drop further. CME FedWatch Tool now shows odds of next Fed rate cut pushed to September.
Fed Rate Cut Odds in September. Source: CME FedWatch ToolSource: https://coingape.com/bitcoin-gold-slip-as-donald-trump-says-unlimited-munition-stockpiles-for-us-iran-war/
